Record Lows For Distressed Sales

The real estate market has seen a continuing reduction in the volume of distressed properties seen in the housing market. The result has been a recent boost to home prices in many parts of the Southern California. Meanwhile, there is still uncertainty about the impact of next month’s national elections shich appears to be causing some would-be homebuyers to delay taking any action until after November, according to the October HousingPulse survey of real estate agents. The survey found that one major reason behind the rise in home prices is a fairly sharp drop in the share of distressed properties found in recent home sales. A drop in the share of distressed properties in the housing market is most obvious indicator contributing to lower leve er foreclosed properties or real estate owned (REO) being put up for sale by banks. The survey respondents reported in October that major banks appear to be keeping many REO properties off the market this year. But they also suggest banks may be looking to unload significant amounts of REO next year – a move that could put downward pressure on home prices.